Insolvencies rocket in 2006

Insolvencies rocketed to over 100,000 in 2006, with £1.4bn of debt written off in the process, according to new figures by KPMG.

The firm estimates that 45,000 individuals took an IVA during the last 12 months, with 65,000 declared bankrupt. The amount owed by IVA debtors averaged £52,000, with 39% of that sum proposed as repayment.

'Given so many people with enormous debts, and the high average level, too many people have debts that they have no realistic hope of repaying,' said Steve Treharne, head of personal insolvency at KPMG.

'Any excessive spending over Christmas and at the New Year sales, especially where goods are paid for on credit, risks tipping even more consumers over the edge.'

There were over 60,000 insolvencies in 2005.